Japan’s Financial Services Agency (FSA) is shifting the regulatory framework for cryptocurrencies from the Payments Services Act to strengthen investor protection and better align crypto activities with securities laws. The regulator highlighted that many issues within the crypto space resemble those traditionally addressed under the Financial Instruments and Exchange Act (FIEA). As a result, it may be appropriate to apply similar regulatory mechanisms and enforcement measures to the crypto market.
In related developments, Japan’s new Prime Minister could provide a boost to risk assets, including the crypto markets, signaling positive momentum for the sector.
In a major collaboration, three of Japan’s largest banks—Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corp. (SMBC), and Mizuho Bank—have joined forces to launch a yen-pegged stablecoin. This initiative aims to streamline corporate settlements and reduce transaction costs, leveraging blockchain technology to enhance efficiency in financial transactions.
Additionally, Japan’s Securities and Exchange Surveillance Commission (SESC) plans to introduce new regulations targeting crypto insider trading. These rules will ban such practices and impose penalties, further strengthening oversight and investor protection in the crypto market.
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